Kroger facial recognition plan raises concerns about dynamic pricing
Kroger reportedly plans to deploy facial recognition cameras and dynamic pricing technology in partnership with Microsoft, raising concerns from Rep. Rashida Tlaib about surge pricing and discriminatory impacts on minority communities. Kroger denies the surge pricing allegations and states the technology is designed to lower prices.
What happened
News leaked over the summer that Kroger was partnering with Microsoft to deploy electronic shelf labels (ESLs) and Enhanced Display for Grocery Environment (EDGE) shelf displays, which would include cameras to capture customer information including facial images for targeted advertising and dynamic pricing.
On October 11, 2024, Rep. Rashida Tlaib sent a letter to Kroger expressing concerns that the facial recognition technology could be used to build personalized customer profiles to determine the maximum price customers are willing to pay, enabling surge pricing. Tlaib noted that facial recognition technology has documented racial biases and can lead to discrimination in predominantly Black and brown communities.
Reported impact
Tlaib stated in her letter that electronic shelf labels could result in dynamic pricing that increases the price of essential goods based on real-time conditions and inventory, creating confusion and hardship for residents.
Index analysis
The plan draws comparisons to the 2002 film Minority Report, in which personalized targeted advertising is displayed based on biometric identification.
Governance controls
Kroger responded that its business model is built on lowering prices to attract customers, that customers are shopping more with Kroger to fight inflation, and that the company does not and has never engaged in surge pricing. Kroger stated that any test of electronic shelf tags is designed to lower prices where it matters most.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.